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Explains what an enterprise owns, including fixed assets (land, buildings) and current assets (cash, inventory).
Details where the money comes from, distinguishing between external debts (liabilities) and the owners' own investment (shareholders' equity). Measurement of Financial Health: Solvency: The ability to meet long-term obligations. Liquidity: The ability to pay off short-term debts quickly.
The core principle taught is that a balance sheet must always stay "in balance," following this equation: Where to Find the PDF Content
The manual is structured to guide readers through the different components of financial health:
Includes a glossary and methodologies for inflation accounting and assessing the overall financial structure. The Fundamental Accounting Equation
For related training manuals on financial literacy that use these principles for workers and entrepreneurs. How to read a balance sheet: an ILO programmed book.